Bailey & Glasser clients achieve favorable settlement in long-running sale-leaseback disputes
After achieving favorable rulings on certain summary judgment issues, Bailey & Glasser’s clients, Foresight Energy and its subsidiaries, Hillsboro Energy and Macoupin Energy, favorably resolved two lawsuits in which the companies faced damages claims exceeding $800 million. The disputes arose from complex sale-leaseback transactions and the application of certain terms of those transactional documents, including the force majeure, termination, and recoupment provisions. In addition, the disputes involved the hard-sciences aspects of spontaneous combustion and underground coal mine engineering, as well as the intricacies of the worldwide coal trade, coal qualities, and coal mine investment modeling.
The publicly-announced settlement agreement involved an upfront payment by Foresight and Hillsboro of $25 million, coupled with a $225 million reduction in Hillsboro’s future lease obligations.
Bailey & Glasser attorneys handled every aspect of both lawsuits, briefing every issue, arguing every motion, and taking and defending every deposition. Brian Glasser, Nicholas Johnson, and Jeffrey Baron led Bailey & Glasser’s team.
“We are pleased to have reached a mutually beneficial resolution in these lawsuits,” said Robert Moore, Foresight’s president and CEO, in a statement. “These agreements provide us with long-term control of our coal reserves and operational flexibility at [the] Deer Run mine.”
Bailey & Glasser has served as litigation and business counsel to Foresight Energy and its subsidiaries since its inception nearly 15 years ago.Contact Form »